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David West;
I understand you are not here to bash, so let me splain it to ya.
The Fraudulent Conveyance covers two different scenarios. The first is the more typical in BK in that the debtor has paid of favored loans in preference to all loans equally. In other words you can not pay back your Mom or friend and favorite credit card yet skip other credit cards and utility bills.
The next scenario cover things you have paid off early possibly in an attempt to save interest owed or for some other undisclosed reason. This is where lets’ say you paid off a credit card or two that you could or would have had to continue payments on or possibly a personal loan that had several years left on the term. Once you file and the automatic stay comes into effect your finances are looked into and it is discovered you paid off the creditors early for whatever reason. There is a claw back clause that allows the creditors you have not paid to recover the funds you have paid early. I believe I have read this can go back for up to two years in some circumstances.
This is where the Capital Contributions come in for WMI and what they had deposited in WMB. The next question for the FC claim is, if you recall in the P&A, the FDIC stated that this is for the Whole Bank and Other Assets. This is where the Automatic Stay comes in. The question is did the FDIC take and sell assets that belonged to the Holding Company? Under the FC yes they did, as well as sell the Bank for less than it should have been sold for. These other assets include 2 Credit Card Divisions WMBfsb (which was capitalized to 65%) and never under capitalized even after the culmination of Project Phillmore, where it would have been capitalized to a 25% ratio. Other assets transferred were holding companies such as2nd and Union as well as all of the other property holding companies WMI had acquired with their acquisitions of other banks. These are all holding companies that would have been held by the Parent Company (WMI) and not by Washington Mutual Bank. To claim these assets were property of the bank is ridiculous and would make the Parent a useless expense. The HJMW has stated she will not pierce the Corporate veil and yet that is precisely what the FDIC and JPM did by claiming the “and other assets” portion of the P&A.
We do not need the Fraudulent Conveyance charge to be levied in reality as the U.S. Trustee could do that as well as completely unwind the P&A leaving the FDIC with one of the most massive messes they have ever encountered or created. Both the Judge and the Trustee have recognized the shenanigans that have transpired within these proceedings as evidenced by the fact we do have an EC working for us. We will fair well in the end as Solomon will be remiss in his duties not to include in his list of assets the “and other Assets” portion of what was stolen by the FDIC. They may require a separate column with an explanation as to why these are in fact the property of WMI but they do need to be included. With there inclusion the court would need to decide the ownership of these assets.
Good luck to you and your shares
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